Telefonaktiebolaget LM Ericsson B ADR (ERIC) Stock Analysis — PE Ratio, PS Ratio, Intrinsic Value & 2030 Price Target
Telefonaktiebolaget LM Ericsson B ADR stock (ERIC) is currently trading at $11.62. Telefonaktiebolaget LM Ericsson B ADR PE ratio is 12.59. Telefonaktiebolaget LM Ericsson B ADR PS ratio (Price-to-Sales) is 1.52. Analyst consensus price target for ERIC is $10.08. WallStSmart rates ERIC as Underperform.
- ERIC PE ratio analysis and historical PE chart
- ERIC PS ratio (Price-to-Sales) history and trend
- ERIC intrinsic value — DCF, Graham Number, EPV models
- ERIC stock price prediction 2025 2026 2027 2028 2029 2030
- ERIC fair value vs current price
- ERIC insider transactions and insider buying
- Is ERIC undervalued or overvalued?
- Telefonaktiebolaget LM Ericsson B ADR financial analysis — revenue, earnings, cash flow
- ERIC Piotroski F-Score and Altman Z-Score
- ERIC analyst price target and Smart Rating
Telefonaktiebolaget LM Ericsson B ADR
📊 No data available
Try selecting a different time range
ERIC Intrinsic Value Analysis for Value Investors
Benjamin Graham Formula · Telefonaktiebolaget LM Ericsson B ADR (ERIC)
ERIC trades at a significant discount to its Graham intrinsic value of $42.59, offering a 74% margin of safety — a level value investors typically seek before buying.
Based on Benjamin Graham Formula. Growth rate capped at 25%. For informational purposes only. Not financial advice.
Smart Analysis
Telefonaktiebolaget LM Ericsson B ADR (ERIC) · 9 metrics scored
Smart Score
Category Performance
WallStSmart pulls financial metrics like revenue growth, profit margins, and valuation ratios and scores each one from 0 to 10 based on how strong or weak it is. Those 10 scores are grouped into 4 categories: Growth, Profitability, Valuation, and Quality — which form the 4 axes of the spider chart you see. The categories are then combined into a final score out of 100, but not equally. Growth and Profitability together count for 60% of the total, because a fast-growing profitable business matters more than just a cheap one. That final number maps to a rating (Strong Buy, Buy, Hold, Avoid) and a letter grade, giving you one clear Stock Rating.
Investment Thesis
Strong fundamentals in market cap, return on equity, price/sales. Concerns around peg ratio and revenue growth. Fundamentals are solid but monitor weak areas for improvement.
Telefonaktiebolaget LM Ericsson B ADR (ERIC) Key Strengths (4)
Every $100 of shareholder equity generates $28 in profit
Earnings per share surging 79.20% year-over-year
Large-cap company with substantial market presence
Paying $1.52 for every $1 of annual revenue
Supporting Valuation Data
Telefonaktiebolaget LM Ericsson B ADR (ERIC) Areas to Watch (5)
Revenue declining -5.00%, a shrinking business
Very expensive relative to growth, significant premium
Very low institutional interest at 10.67%
Premium pricing at 3.3x book value
Decent profitability, keeps $12 per $100 revenue
Supporting Valuation Data
Telefonaktiebolaget LM Ericsson B ADR (ERIC) Detailed Analysis Report
Overall Assessment
This company scores 51/100 in our Smart Analysis, earning a C- grade. Out of 9 metrics analyzed, 4 register as strengths (avg 9.3/10) while 5 fall into concern territory (avg 2.8/10). The category breakdown reveals uneven performance, with some areas requiring attention.
The Bull Case
The strongest argument centers on Return on Equity, EPS Growth, Market Cap. Valuation metrics including Price/Sales (1.52) suggest the stock is attractively priced. Profitability is solid with Return on Equity at 28.20%. Growth metrics are encouraging with EPS Growth at 79.20%.
The Bear Case
The primary concerns are Revenue Growth, PEG Ratio, Institutional Own.. Some valuation metrics including PEG Ratio (3.53), Price/Book (3.27) suggest expensive pricing. Growth concerns include Revenue Growth at -5.00%, which may limit upside. Profitability pressure is visible in Profit Margin at 12.00%.
Key Dynamics to Monitor
Three factors to monitor going forward. First, whether Revenue Growth improves, as this is the primary drag on the overall score. Second, margin trajectory, with Return on Equity at 28.20% currently healthy but needing to be sustained. Third, growth sustainability, with Revenue Growth at -5.00% needing to reaccelerate.
Risk Considerations
Based on the metric profile, this is a moderate-to-high risk investment. There are more areas of concern than strength, warranting a more conservative position size. Investors should size positions according to their risk tolerance and maintain diversification.
Bottom Line
Mixed fundamentals with both positives (Return on Equity, EPS Growth) and negatives (Revenue Growth, PEG Ratio). A cautious approach is warranted. Monitor for improvement in weak areas before increasing conviction.
Disclaimer: Smart Analysis is a scoring system developed by WallStSmart Team. Scores update daily using multi-model valuation framework. Always conduct your own research and consult with financial advisors before making investment decisions.
ERIC Price-to-Sales(PS) Ratio Chart
Historical valuation based on market cap ÷ trailing 12-month revenue
ERIC's Price-to-Sales ratio of 1.52x trades 483% above its historical average of 0.26x (99th percentile), historically expensive. The current valuation is 4% below its historical high of 1.58x set in Mar 2026, and 2066% above its historical low of 0.07x in Oct 2016.
Compare ERIC with Competitors
Top COMMUNICATION EQUIPMENT stocks by market cap
Compare any two stocks →WallStSmart Analysis Synopsis
Data-driven financial summary for Telefonaktiebolaget LM Ericsson B ADR (ERIC) · TECHNOLOGY › COMMUNICATION EQUIPMENT
The Big Picture
Telefonaktiebolaget LM Ericsson B ADR faces headwinds with declining revenue, though profitability provides a cushion. Revenue reached 240.3B with 500% decline year-over-year. Profit margins of 12.0% are healthy, with room for further expansion as the business scales.
Key Findings
ROE of 2820.0% means the company generates strong returns on shareholder equity. Above 20% is considered top-tier.
Generating 14.9B in free cash flow and 15.7B in operating cash flow. Earnings are translating into actual cash generation.
Revenue contracted 500% YoY. Worth determining whether this is cyclical or structural.
What to Watch Next
Margin expansion: can Telefonaktiebolaget LM Ericsson B ADR push profit margins above 15% as the business scales?
Sector dynamics: monitor COMMUNICATION EQUIPMENT industry trends, competitive moves, and regulatory changes that could impact Telefonaktiebolaget LM Ericsson B ADR.
Bottom Line
Telefonaktiebolaget LM Ericsson B ADR faces challenges with declining revenue. While profitability provides a buffer, the long-term trajectory needs to improve. Watch for management's strategic response and whether the company can stabilize or pivot to new growth drivers.
This synopsis is generated from publicly available financial data. It is not financial advice. Always conduct your own research and consult a qualified financial advisor before making investment decisions.
Insider Transactions
Loading insider activity...
About Telefonaktiebolaget LM Ericsson B ADR(ERIC)
NASDAQ
TECHNOLOGY
COMMUNICATION EQUIPMENT
USA
Telefonaktiebolaget LM Ericsson (publ), provides communications infrastructure, services and software solutions for telecommunications and other sectors. The company is headquartered in Stockholm, Sweden.